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1 (October 15, 2004)

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                                                                 Order Code RS21644
                                                                     October 15, 2004



 CRS Report for Congress

               Received through the CRS Web



  The Cost of Operations in Iraq, Afghanistan,

                   and Enhanced Security

                               Amy Belasco
                      Specialist in National Defense
               Foreign Affairs, Defense, and Trade Division

Summary


     Since the 9/11 terrorist attacks, CRS estimates that the Department of Defense
 (DOD) has received about $203 billion to cover the costs of combat operations,
 occupation, and support for military personnel deployed or supporting operations in Iraq
 and Afghanistan and for enhanced security at military installations. The total includes
 $25 billion to cover some of DOD's FY2005 costs. DOD is expected to request another
 $50 billion or more for these operations in early 2005. If Congress approves those
 funds, DOD funding for these purposes through FY2005 would exceed $250 billion.

     While the Defense Department has provided an extensive amount of data, it has not
 provided a full breakdown of the allocation of these funds. The estimates in this report
 are based on data from DOD and from other sources. Of the $203 billion provided thus
 far, DOD planned to spend about $121 billion for Iraq, $53 billion for Afghanistan, and
 $23 billion for enhanced security, with an unallocated remainder of $6 billion
 transferred from its regular appropriations for the global war on terrorism.

     If funding requirements in FY2005 are similar to recent experience, DOD's
 cumulative costs are likely to reach about $162 billion for Iraq, about $59 billion for
 Afghanistan, and about $27 billion for enhanced security by the end of the year.
 Between FY2002 and FY2004, Congress also appropriated $20.9 billion for Iraq and
 $3.7 billion for Afghanistan for reconstruction. Including reconstruction, by the end of
 FY2005, estimated costs in Iraq would total about $183 billion and about $63 billion for
 Afghanistan. State Department operations and embassy construction could add more.

     Of the $203 billion provided to date, not including reconstruction assistance, DOD
 had obligated - or contracted to spend - about $175 billion through the end of
 FY2004, including about $107 billion for Iraq, $46 billion for Afghanistan, and $18
 billion for enhanced security. If recent trends persist, DOD will obligate about another
 $60 billion for Iraq in FY2005, bringing the total to more than $165 billion.


Congressional Research Service ** The Library of Congress

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